The NZD/USD pair has soared, as the Reserve Bank of New Zealand is expected to start raising interest rates next month, after economic growth in New Zealand recorded an expansion exceeding anticipations.
All signs and recent fundamentals confirm that the RBNZ have to raise the rates, whereas production has started to boom during the fourth quarter on manufacturing rebound.
On the other hand, New Zealand’s currency strengthened for the third day versus the yen as the Chinese data helped spur demand for high-yielding currencies.
Moreover, Federal Reserve policy makers will downplay the impact of commodity prices on inflation and signal the need to maintain record stimulus, which is another support for New Zealand dollar to continue its upside movement against the US dollar.
On Monday, the New Zealand economy will release the services index for March at 22:30 GMT. The consumer price index for the first quarter will be released at 22:45 GMT and the previous reading was 2.3%, as for the annual reading it had a previous reading of 4.0%.
Originally posted here
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